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Foreign Currency Forecast for Australian Dollar – Chinese data could see the ‘Aussie’ climb

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The Australian Dollar exchange rate was trading in the region of 1.0319 against the US Dollar as of 10:10 am GMT

The odds of the Reserve Bank of Australia initiating additional monetary easing methods were not reduced following the release of mediocre Australian employment data.

At first glance the figures, released by the Sydney based Statistics Bureau, could be perceived as positive, particularly as in January the number of people in employment was up 10,400 from the previous month.

Although this advance was 4,400 more than predicted by economists, once you break the figure down it becomes less impressive.

The boost came from a 20,200 increase in part-time employment, but the number of full-time positions actually slumped by 9,800.

As stated by currency strategist Mitul Kotecha, ‘The details in the jobs data are less impressive than the headline number, and that will temper any gains in the ‘Aussie’ Dollar. It was slightly better than expected, but it’s mostly driven by part-time jobs. I don’t think this will change the RBA perspective.’

Following the news the Australian Dollar dropped to its lowest level against the US Dollar for 3-months. The ‘Aussie’ was able to gain on its New Zealand counterpart however, after employment figures for the smaller South Pacific nation failed to live up to expectations.

Despite this result the Australian currency could experience a rebound tomorrow following Chinese trade balance data. Industry experts are expecting China’s imports to have risen by 23.5 per cent in January from the same period of 2012 and predicting that exports advanced 17.5 per cent.

If the figures fall in line with these expectations the prospects for Australia, one of China’s main trading partners, will improve, potentially allowing the Australian Dollar to gain.

Current AUD Exchange Rates

The Australian Dollar to Euro exchange rate is currently trading at 0.7611

The Australian Dollar to US Dollar exchange rate is currently trading at 1.0323

The Australian Dollar to Pound Sterling exchange rate is currently trading at 0.6585

The Australian Dollar to New Zealand Dollar exchange rate is currently trading at 1.2249                      

The Australian Dollar to Canadian Dollar exchange rate is currently trading at 1.0275

The Australian Dollar to Emirati Dirham exchange rate is currently trading at 3.8215

The Australian Dollar to Swiss Franc is currently trading at 0.9367

The Australian Dollar to Japanese Yen exchange rate is currently trading at 96.8175

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